Question

Prepare specimen of a Balance Sheet in liquidity order with imaginary figures.

Answer 1

The format of a balance sheet, based on liquidity order is given below :

Balance Sheet (on the basis of Liquidity order)

As on.....

$\begin{array}{cccc}\text{Liabilities}& \text{(Rs)}& \text{Assets}& \text{(Rs)}\\ \text{Current Liabilities :}& & \text{Current Assets :}& \\ \text{Creditors}& \text{xxx}& \text{Cash in hand}& \text{xxx}\\ \text{Bills Payable}& \text{xxx}& \text{Cash at bank}& \text{xxx}\\ \text{Bank overdraft}& \text{xxx}& \text{Debtors}& \text{xxx}\\ \text{Outstanding expenses}& \text{xxx}& \text{Bills Receivable}& \text{xxx}\\ \text{Income received in advance}& \text{xxx}& \text{Stock-in-trade}& \text{xxx}\\ \text{Long Term Liabilities :}& & \text{Prepaid expenses :}\text{xxx}& \\ \text{Loan}& \text{xxx}& \text{Investments : (give details)}& \text{xxx}\\ \text{Mortage}& \text{xxx}& \text{Current Assets :}& \\ \text{Capital}\text{xxx}& & \text{Furniture and Fixtures}& \text{xxx}\\ \text{Add : Net Profit}\text{xxx}& & \text{Plant and Machinery}& \text{xxx}\\ & & \text{Land}& \text{xx}\\ \text{Income received in advance}& \text{xxx}& \text{Stock-in-trade}& \text{xxx}\\ \text{Long Term Liabilities :}& & \text{Prepaid expenses :}\text{xxx}& \\ \text{Loan}& \text{xxx}& \text{Investments : (give details)}& \text{xxx}\\ \text{Mortage}& \text{xxx}& \text{Current Assets :}& \\ \text{Capital}\text{xxx}& & \text{Furniture and Fixtures}& \text{xxx}\\ \text{Add : Net Profit}\text{xx}& & \text{Plant and Machinery}& \text{xxx}\\ \text{Less : Drawings}\text{(xx)}& \text{xxx}& \text{Building}& \text{xxx}\\ & & \text{Land}& \text{xx}\\ & & \text{Good will}& \text{xxx}\\ & \underset{–}{\overline{\underset{–}{\text{xxx}}}}& & \underset{–}{\overline{\underset{–}{\text{xxx}}}}\end{array}$